U.S. stocks experienced a significant decline on Tuesday following the implementation of the Trump administration’s anticipated tariffs. The Dow Jones Industrial Average fell by nearly 800 points, or 1.8%, while the S&P 500 also decreased by 1.8%. The tech-heavy Nasdaq dropped by 1.6%. These tariffs affect imports from Mexico, Canada, and China, the United States’ three largest trading partners, potentially raising prices for products ranging from gasoline to avocados to iPhones.
In early trading, shares of retail giant Target fell by 4.5% after the company’s earnings release highlighted “tariff uncertainty” as a possible business obstacle. Walmart’s stock price decreased by 1%, and Amazon shares dropped by 2%. Best Buy’s shares plunged over 13% after the CEO indicated that price increases are “highly likely” due to the tariffs.
The auto industry also faces challenges, with higher production costs expected to impact U.S. automakers reliant on supply chains involving Mexico and Canada. Ford’s shares fell by 3%, General Motors dropped over 4%, and Stellantis, the parent company of Jeep and Chrysler, saw its shares plummet more than 7%. Tesla’s stock price dropped nearly 7%.
The market downturn began on Monday afternoon when Trump confirmed plans to impose new tariffs. He maintained a March 4 start date for 25% tariffs on imports from Mexico and Canada, along with a 10% tariff on Chinese goods, which increased to 20% as of Tuesday, according to an amended executive order. Experts suggest these tariffs could lead to higher prices for U.S. consumers, as importers often pass on some of the increased costs.
The tariffs also appeared to affect some of the “Magnificent Seven” tech firms. Nvidia’s shares fell over 2%, Meta’s stock price dropped by 4%, and Microsoft’s shares fell by 1%. In contrast, Alphabet and Google’s shares remained largely unchanged in early trading on Tuesday.
This is a developing story. Please check back for updates.
— news from ABC News